Housing Benefit, Council Tax Reduction and Savings Query

Nerdtech

Hello,

This is a fairly complex query (well to me it is anyway) but I will try and explain it as simply as I can.

Basically I am the sole caregiver for my dad for which I receive Carers Allowance only (I have never applied for UC or the carers element of UC). I also live with him.

He gets Housing Benefit and Council Tax Reduction and about a month or so ago he received a random review letter, I believe this is to make sure he's still entitled to HB and CTR, which I helped him fill in and send off because he doesn't really understand forms and is registered blind. With the form I sent off 3 months worth of bank statements from his bank as proof of income which was requested.

He sends all the money he gets on a weekly basis from his account to my bank account, this is because he wants me to take care of everything financially. This includes ensuring all our bills are paid, buying food, anything else he and myself need and the usual day to day expenses. He would not be able to do any of this himself without help because he is registered blind and also has bad mobility issues so we talked about this from the start of when I became his caregiver and this is what was decided.

I received a letter today from the council asking me why I have not applied for UC (carers element?) and also they want 3 months worth of bank statements from my bank accounts as they have noticed that as soon as money goes into my dads bank account it gets transferred to my main account. 

The issue is that I have now amassed a very substantial amount of savings over the years with my CA and his money all combined. I know that I can work whilst receiving CA but I have never been in paid employment since I started caring for my dad. CA and the money I get from him are the only income I get. 

I know that CA is a non means-tested benefit so am I right in thinking the savings I have will not affect his CTR and HB? Would the money be classed as regular gifts and my savings not his? 

Thank you in advance for any help I may receive.

TimeLord1

Hello 

Carer's Allowance is a non-means-tested benefit. This means that the amount of savings you have personally will not affect your eligibility for Carer's Allowance.

Regarding your dad's Housing Benefit and Council Tax Reduction, these are means-tested benefits. This means the council will look at his income and capital (savings) to determine his eligibility.

The money your dad transfers to your account each week is likely to be viewed as a regular contribution towards household expenses and your support as his caregiver, rather than a gift in the traditional sense of accumulating wealth for you personally. The fact that you use this money to pay bills, buy food, and cover daily expenses for both of you supports this view.

It's understandable to feel anxious about this, but based on the information you've provided, your dad's Housing Benefit and Council Tax Reduction should not be affected by the savings you have accumulated from your Carer's Allowance and the money he provides for his care. The council needs to understand the context of the money transfers and the purpose of the funds.

If you are still concerned after sending your response, it might be helpful to seek advice from a local Citizens Advice Bureau or a welfare rights organization. They can offer tailored advice based on your specific circumstances and help you navigate the council's inquiries.

Personally, it's when these payments aren't kept separate and records kept regarding the money for his care that can confuse things when dealing with these checks. Message the council also and explain the situation. But try to open an account just for your father's care etc.

Rubyroobs

You might be better off just getting power of attorney for your dad to manage his finances. 
You must be able to see how it looks to them. If your dad wasn't transferring all his money to you then he would likely be the one amassing savings ( and likely wouldn't qualify for the housing benefit and council tax support) because if you are amassing savings then he is clearly sending you an excess amount unless of course you had a lot of savings before this arrangement started?
I guess it will depend whether the council think he has deprived himself of capital and whether the amount he transfers to you is reasonable to cover his half of the bills.

Nerdtech

Thank you for your responses and as I can see they are very different. I can see it from both points of view and I agree with both. I will look into getting a power of attorney thank you for the suggestion. 

Brie

If you can't get or don't want to get power of attorney (& it does take time) you might get third party authority on his account which would give you the right to have a debit card and have online banking etc.  And then manage his money out of his own account for bills, food etc.

The alternative might be to get a joint account with him so that you again have the right to do everything needed with the account to assist him.  And have your CA paid into your own account so it's separate.  One benefit of a joint account is that it is often assumed that the money is joint so there's a 50/50 split of the balance between you and dad which lessens the amount that the council might consider.  This worked with us when the council was assessing MiL for paying care home fees.  Whether your council will do the same in your situation will be up to them of course.  

Nerdtech

Brie said:

If you can't get or don't want to get power of attorney (& it does take time) you might get third party authority on his account which would give you the right to have a debit card and have online banking etc.  And then manage his money out of his own account for bills, food etc.

The alternative might be to get a joint account with him so that you again have the right to do everything needed with the account to assist him.  And have your CA paid into your own account so it's separate.  One benefit of a joint account is that it is often assumed that the money is joint so there's a 50/50 split of the balance between you and dad which lessens the amount that the council might consider.  This worked with us when the council was assessing MiL for paying care home fees.  Whether your council will do the same in your situation will be up to them of course.  

Thank you for your response and the valuable information you and others have provided. I will certainly consider them. I am not the brightest spark when it comes to the complexities of the benefits system. As you can imagine being a caregiver for someone can be very stressful and time consuming and sometimes you think you're doing the right thing when it might not be.

HillStreetBlues

If your father's account has under £6k or £10k if over SPA then there is nothing to worry about as long as you aren't keeping money for him.
Sounds like all that's happening is your father gives you monies to sort everything out and any leftovers it's your to keep as help looking after him, there is nothing wrong with that.
The council have no right to look at your account, as you aren't the claimant, and I would be telling the council that.

HillStreetBlues

Rubyroobs said:

You might be better off just getting power of attorney for your dad to manage his finances. 
You must be able to see how it looks to them. If your dad wasn't transferring all his money to you then he would likely be the one amassing savings ( and likely wouldn't qualify for the housing benefit and council tax support) because if you are amassing savings then he is clearly sending you an excess amount unless of course you had a lot of savings before this arrangement started?
I guess it will depend whether the council think he has deprived himself of capital and whether the amount he transfers to you is reasonable to cover his half of the bills.

As long as father hasn't amassed 6 or 10k depending on age, there can be no Deprivation of Capital.

Nerdtech

HillStreetBlues said:

If your father's account has under £6k or £10k if over SPA then there is nothing to worry about as long as you aren't keeping money for him.
Sounds like all that's happening is your father gives you monies to sort everything out and any leftovers it's your to keep as help looking after him, there is nothing wrong with that.
The council have no right to look at your account, as you aren't the claimant, and I would be telling the council that.

Yes this is exactly what has been happening. We talked about this when I became his caregiver, I wasn't really happy about it but wanted to honour his wishes. It does make sense though as it has taken a lot of stress of him with me looking after his finances which I'm guessing is why he suggested it in the first place. I also don't understand why the council want to look at my account as you have said I did not make any claim for HB and CTR but as some others have alluded to it maybe to see in which context the money is being spent. 

HillStreetBlues

Nerdtech said:

Yes this is exactly what has been happening. We talked about this when I became his caregiver, I wasn't really happy about it but wanted to honour his wishes. It does make sense though as it has taken a lot of stress of him with me looking after his finances which I'm guessing is why he suggested it in the first place. I also don't understand why the council want to look at my account as you have said I did not make any claim for HB and CTR but as some others have alluded to it maybe to see in which context the money is being spent. 

Your father can spend his money how he sees fit and it seems that is what he is doing.  I would just confirm to council there is none of your father's capital in your account, and your father doesn't have to justify his spending.

toomuchinfo

If you live there and your Dad has Housing Benefit there will be a non dependent deduction and you will be expected to give a contribution. I think they ask for your income and would expect you to claim any means tested benefits that you are able. That’s maybe why they are asking about your income and capital.